VBNK Stock Analysis: VersaBank | NASDAQ
Banks - Regional | NASDAQ, USA | Market Cap: 759m USD | 12M Return: 79.1% | CA92512J1066 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 3.17M
EPS Trend: -56.6%
Qual. Beats: -1
Rev. Trend: 80.4%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality
VersaBank is a Canadian Schedule I chartered bank that operates a branchless, digital-first banking model, serving customers across Canada and the United States through four segments: Digital Banking Canada, Digital Banking USA, DRTC (Cybersecurity), and Digital Meteor. It offers deposit products including GICs, RRSPs, and TFSAs, alongside lending services such as point-of-sale financing, commercial real estate mortgages, public sector loans, and leases. The company also provides cybersecurity services through its DRTC subsidiary. VersaBank was incorporated in 1979, is headquartered in London, Ontario, and rebranded from Pacific & Western Bank of Canada in 2016.
- DRTC cybersecurity segment revenue accelerates on rising global cyber threat demand
- Point of sale loan portfolio expands as partner finance originations grow
- Net interest margin compresses as Bank of Canada cuts policy rates
- Digital Banking USA deposits scale with cross-border commercial real estate lending
| Net Income: 33.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -1.38 > 1.0 |
| NWC/Revenue: -1.87k% < 20% (prev -1.32k%; Δ -544.1% < -1%) |
| CFO/TA 0.00 > 3% & CFO 16.0m > Net Income 33.9m |
| Net Debt (-379.6m) to EBITDA (53.5m): -7.10 < 3 |
| Current Ratio: 0.09 > 1.5 & < 3 |
| Outstanding Shares: last quarter (23.0m) vs 12m ago -28.92% < -2% |
| Gross Margin: 32.50% > 18% (prev 37.98%; Δ -5.48% > 0.5%) |
| Asset Turnover: 4.67% > 50% (prev 5.47%; Δ -0.80% > 0%) |
| Interest Coverage Ratio: 0.26 > 6 (EBIT TTM 49.4m / Interest Expense TTM 193.2m) |
| A: -0.78 (Total Current Assets 518.5m - Total Current Liabilities 5.91b) / Total Assets 6.88b |
| B: 0.03 (Retained Earnings 230.1m / Total Assets 6.88b) |
| C: 0.01 (EBIT TTM 49.4m / Avg Total Assets 6.18b) |
| D: 0.09 (Book Value of Equity 565.9m / Total Liabilities 6.31b) |
| Altman-Z'' = -4.89 = D |
| DSRI: 0.88 (Receivables 28.2m/33.4m, Revenue 288.6m/299.8m) |
| GMI: 1.17 (GM 37.98% / 32.50%) |
| AQI: 1.05 (AQ_t 0.92 / AQ_t-1 0.88) |
| SGI: 0.96 (Revenue 288.6m / 299.8m) |
| TATA: 0.00 (NI 33.9m - CFO 16.0m) / TA 6.88b) |
| Beneish M = -2.97 (Cap -4..+1) = A |
As of October 06, 2026, the stock is trading at USD 22.36 with a total of 125,917 shares traded. Over the past week, the price has changed by -0.84%, over one month by +1.36%, over three months by -0.98% and over the past year by +79.06%.
Current recommended Stop Loss: 20.90 (which is 6.5% or 1.9 ATR below the current price).
VersaBank has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy VBNK.
- StrongBuy: 1
- Buy: 2
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 25.5 | 14% |
Market Cap CAD = 1.08b (758.9m USD * 1.4264 USD.CAD)
P/E Trailing = 31.6351
P/E Forward = 11.6144
P/S = 5.1808
P/B = 1.8579
Revenue TTM = 288.6m CAD
EBIT TTM = 49.4m CAD
EBITDA TTM = 53.5m CAD
Long Term Debt = 103.8m CAD (from longTermDebt, last quarter)
Short Term Debt = 436k CAD (from shortTermDebt, last fiscal year)
Debt = 110.7m CAD (from shortLongTermDebtTotal, last quarter) + Leases 3.45m
Net Debt = -379.6m CAD (calculated: Debt 110.7m - CCE 490.3m)
Enterprise Value = 703.0m CAD (1.08b + Debt 110.7m - CCE 490.3m)
Interest Coverage Ratio = 0.26 (Ebit TTM 49.4m / Interest Expense TTM 193.2m)
EV/FCF = 7.78x (Enterprise Value 703.0m / FCF TTM 90.4m)
FCF Yield = 12.86% (FCF TTM 90.4m / Enterprise Value 703.0m)
FCF Margin = 31.33% (FCF TTM 90.4m / Revenue TTM 288.6m)
Net Margin = 11.74% (Net Income TTM 33.9m / Revenue TTM 288.6m)
Gross Margin = 32.50% ((Revenue TTM 288.6m - Cost of Revenue TTM 194.8m) / Revenue TTM)
Gross Margin QoQ = -35.09% (prev 44.20%)
Tobins Q-Ratio = 0.10 (Enterprise Value 703.0m / Total Assets 6.88b)
Interest Expense / Debt = 174.4% (Interest Expense 193.2m / Debt 110.7m)
Taxrate = 31.49% (15.6m / 49.4m)
NOPAT = 33.9m (EBIT 49.4m * (1 - 31.49%))
Current Ratio = 0.09 (Total Current Assets 518.5m / Total Current Liabilities 5.91b)
Debt / Equity = 0.20 (Debt 110.7m / totalStockholderEquity, last quarter 565.9m)
Debt / EBITDA = -7.10 (Net Debt -379.6m / EBITDA 53.5m)
Debt / FCF = -4.20 (Net Debt -379.6m / FCF TTM 90.4m)
Total Stockholder Equity = 548.5m (last 4 quarters mean from totalStockholderEquity)
RoA = 0.55% (Net Income 33.9m / Total Assets 6.88b)
RoE = 6.18% (Net Income TTM 33.9m / Total Stockholder Equity 548.5m)
RoCE = 7.58% (EBIT 49.4m / Capital Employed (Equity 548.5m + L.T.Debt 103.8m))
RoIC = 3.56% (NOPAT 33.9m / Invested Capital 952.3m)
WACC = 8.94% (E(1.08b)/V(1.19b) * Re(9.86%) + (debt cost/tax rate unavailable))
Discount Rate = 9.86% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -21.36 | Cagr: -5.23%
[DCF] Terminal Value 70.90% ; FCFF base≈113.4m ; Y1≈99.4m ; Y5≈80.3m
[DCF] Fair Price = 47.92 (EV 1.17b - Net Debt -379.6m = Equity 1.55b / Shares 32.4m; r=8.94% [WACC]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: -56.63 | EPS CAGR: -11.45% | SUE: -1.08 | # QB: -1
Revenue Correlation: 80.39 | Revenue CAGR: 7.85% | SUE: -0.04 | # QB: 0
EPS current Quarter (2027-01-31): EPS=0.38 | Chg30d=+7.15% | Revisions=+0% | Analysts=3
EPS current Year (2026-10-31): EPS=1.18 | Chg30d=+4.30% | Revisions=-17% | GrowthEPS=+39.7% | GrowthRev=+25.1%
EPS next Year (2027-10-31): EPS=1.98 | Chg30d=+18.09% | Revisions=+17% | GrowthEPS=+67.7% | GrowthRev=+37.8%
[Analyst] Revisions Ratio: +0% (up=4, down=4)